Nikkei sinks 4 pct, Sony dives on profit warning

(Updates with comment, stocks)

TOKYO Oct 24 (Reuters) - The Nikkei average slid 4 percent on Friday, dragged down by Sony Corp (6758.T) after it halved its full-year profit forecast, while spooked investors dumped shares in other exporters on fears about their earnings prospects.

Shares of Sony plunged nearly 12 percent in early trade after the company slashed its annual operating profit forecast by 57 percent to far below market estimates in its second downward revision this year, blaming a firmer yen and slower flat TV and digital camera demand. [ID:nT6579]

"For the Japanese economy that has grown led by overseas demand, the slowdown in the European and the U.S. economies is directly hitting it," said Takahiko Murai, general manager of equities at Nozomi Securities.

"Sony's revision this time probably won't mean its earnings prospects have found a floor. There's a growing possibility that the company will revise down earnings in March or the first half of the next business year."

As of 0050 GMT, the Nikkei .N225 had shed 336.13 points to 8,124.85. On Thursday, it hit its lowest point in nearly 5-½ years at 8,016.61.

The broader Topix .TOPX lost 3.5 percent to 841.58.

The euro fell 0.6 percent against the yen to 125.28 yen EURJPY=, above a six-year low of 123.13 yen hit on Thursday. The low-yielding yen has benefited as a safe-haven currency amid worries about global economies.

Investors fret over a stronger yen as it curbs exporters' overseas profits when they are brought home.

Shares of Sony lost 11.8 percent to 2,025 yen.

Canon Inc (7751.T) tumbled 7.2 percent to 2,830 yen, while Toyota Motor Corp (7203.T) dropped 3.2 percent to 3,310 yen. (Reporting by Aiko Hayashi; Editing by Chris Gallagher)